What is the Context of Consumer Duty?

Within digital assets, Consumer Duty represents a significant regulatory focus, particularly concerning transparency in decentralized finance and the clarity of risk disclosures for novel crypto products. The practical application of these principles to permissionless systems and non-custodial services remains a key discussion point among global regulators. Future developments will likely involve more specific guidance on how platforms and service providers must adapt their offerings to meet these heightened consumer protection standards.

Consumer Duty

Definition

Consumer Duty is a regulatory standard requiring financial firms to act in their customers’ best interests. This principle extends beyond merely avoiding consumer detriment, mandating proactive measures to achieve positive outcomes for retail clients. It necessitates that firms consider the entire customer journey, from product design and marketing to ongoing service and support. Adherence involves a fundamental shift in organizational culture to consistently prioritize customer welfare.

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∞Digital Asset Investing

∞Financial Promotions

∞Risk Disclosure

FCA Lifts Retail Crypto ETN Ban Imposing Strict Investor Protection Rules

New FCA rules mandate stringent pre-sale compliance, including appropriateness tests and cooling-off periods, to operationalize retail ETN access.

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∞Crypto Custody

∞Trading Platform Regulation

∞Operational Resilience

UK Regulator Mandates Financial Conduct Rules for Crypto Asset Activities

The FCA's extension of the Senior Managers Regime and Consumer Duty to crypto fundamentally alters governance and accountability for regulated firms.

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∞Compliance Framework

∞Governance Controls

∞Client Assets

UK Financial Conduct Authority Proposes Applying Core Handbook Rules to Crypto Firms

The FCA's consultation integrates digital asset service providers into the full regulatory perimeter, mandating alignment with Principles of Business and Consumer Duty standards.

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∞Regulatory Framework

∞Retail Investor Access

∞Market Liberalization

FCA Lifts Retail Ban on Crypto ETNs Effective October 8

The UK FCA's reversal of the retail crypto ETN ban mandates new compliance for market access and investor protection.

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∞UK Compliance

∞Regulatory Framework

∞Consumer Duty